Switch to:
Quanta Services Inc (NYSE:PWR)
Beneish M-Score
-2.80 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Quanta Services Inc has a M-score of -2.80 suggests that the company is not a manipulator.

PWR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.88   Max: -0.61
Current: -2.8

-3.88
-0.61

During the past 13 years, the highest Beneish M-Score of Quanta Services Inc was -0.61. The lowest was -3.88. And the median was -2.54.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Quanta Services Inc for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9518+0.528 * 1.0536+0.404 * 0.9917+0.892 * 0.9671+0.115 * 0.9999
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0104+4.679 * -0.0573-0.327 * 1.0042
=-2.80

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $1,565 Mil.
Revenue was 2042.186 + 1792.43 + 1713.737 + 1899.272 = $7,448 Mil.
Gross Profit was 302.582 + 200.217 + 203.313 + 223.039 = $929 Mil.
Total Current Assets was $2,405 Mil.
Total Assets was $5,476 Mil.
Property, Plant and Equipment(Net PPE) was $1,166 Mil.
Depreciation, Depletion and Amortization(DDA) was $201 Mil.
Selling, General & Admin. Expense(SGA) was $631 Mil.
Total Current Liabilities was $1,246 Mil.
Long-Term Debt was $482 Mil.
Net Income was 73.742 + 16.562 + 20.496 + -5.074 = $106 Mil.
Non Operating Income was 0.752 + -1.103 + 0.081 + -0.567 = $-1 Mil.
Cash Flow from Operations was -69.335 + 66.528 + 199.739 + 223.533 = $420 Mil.
Accounts Receivable was $1,700 Mil.
Revenue was 1939.438 + 1872.34 + 1861.386 + 2027.614 = $7,701 Mil.
Gross Profit was 235.215 + 227.505 + 237.906 + 311.628 = $1,012 Mil.
Total Current Assets was $2,363 Mil.
Total Assets was $5,373 Mil.
Property, Plant and Equipment(Net PPE) was $1,126 Mil.
Depreciation, Depletion and Amortization(DDA) was $194 Mil.
Selling, General & Admin. Expense(SGA) was $646 Mil.
Total Current Liabilities was $1,341 Mil.
Long-Term Debt was $348 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(1565.08 / 7447.625) / (1700.314 / 7700.778)
=0.21014484 / 0.22079769
=0.9518

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(1012.254 / 7700.778) / (929.151 / 7447.625)
=0.13144828 / 0.12475803
=1.0536

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (2405.351 + 1165.687) / 5476.468) / (1 - (2362.664 + 1125.501) / 5373.424)
=0.34793045 / 0.35084873
=0.9917

4. SGI = Sales Growth Index

Ratio of sales in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=7447.625 / 7700.778
=0.9671

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(194.02 / (194.02 + 1125.501)) / (200.974 / (200.974 + 1165.687))
=0.14703821 / 0.14705476
=0.9999

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(631.246 / 7447.625) / (645.957 / 7700.778)
=0.08475803 / 0.08388204
=1.0104

7. LVGI = Leverage Index

The ratio of total debt to total assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((482.399 + 1245.908) / 5476.468) / ((348.209 + 1340.538) / 5373.424)
=0.31558789 / 0.31427764
=1.0042

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(105.726 - -0.837 - 420.465) / 5476.468
=-0.0573

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Quanta Services Inc has a M-score of -2.80 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Quanta Services Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.10051.0510.77640.9861.0181.08390.98011.00061.03580.9209
GMI 0.93270.91830.96120.9391.10121.21270.84561.0291.02031.2368
AQI 0.80662.01840.94380.94431.04110.99950.86741.06611.08280.8276
SGI 1.14511.2591.42330.87781.09381.15551.41171.0831.20830.9774
DEPI 1.01181.33160.83411.18470.9611.03630.98211.22460.77910.9042
SGAI 0.85011.05260.90391.15040.90090.94970.91191.02991.20360.8598
LVGI 1.00220.58280.60650.93690.76261.4421.03121.05091.04651.7086
TATA -0.0642-0.0244-0.024-0.0523-0.0186-0.01810.0386-0.01390.0081-0.0585
M-score -2.65-1.78-2.34-2.89-2.31-2.37-2.08-2.42-2.25-3.01

Quanta Services Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.11681.11741.03220.91530.89960.87850.92410.96390.91620.9518
GMI 1.08271.09661.011.06011.06561.13051.24941.22051.20071.0536
AQI 1.08340.92241.08280.92071.09940.94830.82760.96590.81530.9917
SGI 1.10961.16851.21251.1951.13741.03320.9740.9430.92890.9671
DEPI 1.16421.1460.76250.97820.74060.70810.92390.74690.98060.9999
SGAI 1.08881.14041.2071.04781.09220.98850.85740.9420.94651.0104
LVGI 1.06551.10751.04651.19131.38271.61621.70861.53451.33661.0042
TATA 0.01730.01950.0081-0.0325-0.0503-0.0428-0.0603-0.0677-0.0656-0.0573
M-score -2.13-2.15-2.26-2.61-2.78-2.95-3.01-2.97-3.00-2.80
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK